Minimum Wages Act, 1948.pptx

The labor sector of our country faced increased exploitation at the hands of the contractors and thus were unable to safeguard their interests on their own.
Many a times, they were forced to work for long hours at ridiculously low rates, and had no power to raise their voice against such instances.
Hence, in order to ensure the payment of at least such amount of wages that makes them able to fulfill their necessities of life, Minimum Wages Act was enacted in 1948, provisions of which are represented in this particular presentation.

1. Minimum Wages Act, 1948 Presented By Ishvinder Kaur MBA – 3 rd Sem Roll No.- 202118

2. Introduction to the act The minimum wages act 1948 is an act of parliament concerning Indian Labor Law that sets the minimum wages that must be paid to skilled and unskilled labors. India introduced the Minimum Wages Act in 1948,giving both the Central government and State government jurisdiction in fixing wages. The Act lays down the minimum rates of wages for both skilled and unskilled labour and aims to provide a decent standard of living for them. Payment of wages below the minimum wage rate amounts to forced labor . Wage boards are set up to review the industry's capacity to pay and fix minimum wages such that they at least cover a family of four's requirements of calories, shelter, clothing, education, medical assistance, and entertainment.

3. History of the act The initiative by Shri K.G.R. Chaudhary in 1920 set up boards for determination of wages. The International Labor Conference adopted convention no. 26 and 30 in 1928 relating to wage fixing machinery in trades or parts of trades. A Minimum wage bill was introduced in the Central Legislative Assembly on 11.04.1946 and came into force with effect from 15.03.1948 The act was to secure the welfare of unorganized workers in certain industries by fixing the minimum rates of wages.

4. What is living wage ? Living wage The level of income for a worker which will ensure a basic standard of living including good health, dignity, comfort, education and provide for any contingency.

5. What is fair wage? FAIR WAGE Any wage paid to the employees that are more than the minimum wage is known as a fair wage. It is the wage that seeks to maintain a level of employment in the industry and also looks after the industry’s capacity to pay sufficient remuneration to the employees. Fair wage, according to the committee on Fair Wage, is the wage which is above the minimum wage but below the living wage. It is the wage considered fair and agreed upon by both the parties.

6. What is minimum wage ? Minimum wage It has been defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period. The purpose of minimum wages is to protect workers against unduly low pay.

7. Objectives of the act To fix the minimum rates of wages that are to be provided to the employees and revise such rates of wages every five years.  To secure an adequate living wage for all the laborers in the interest of the public. To fix the daily working hours of the employees. To prevent exploitation of the workers by the employers.  To ensure that the labourers can maintain a decent standard of living. To provide basic physical needs, good health and a level of comfort to the employees.

8. Objectives of the act C0nt. 7. To penalise the employers when they fail to provide minimum wages to the workers. 8. To establish advisory boards to regulate and administer the provisions of the Act. 9. To lay down the powers and duties of the inspectors for the purposes of this Act. 10. To prevent any employer from wrongfully infringing the right of any employees. 11. To establish appropriate authorities where the employees can seek redressal when the employer has failed to pay the daily wage.  12. To authorise the Central and state governments to make rules and regulations for the purposes of this Act. 

9. Section 3 minimum rates of wages The appropriate government may fix: The minimum rate of wages for time work , the minimum rate of wage for piece work , a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis, a minimum rate of wage to substitute the for the minimum rate which would otherwise be applicable, in respect of overtime work done by employees. The rate of wages shall be revised every five years. Different minimum rates of wages may be fixed for; different classes of work, different scheduled employment, different localities, different age groups, etc. Minimum wages may be fixed by the wage period such as; by the hour, by the day, etc.  

10. Section 4 Different rates of wages Basic + Special allowance ( which varies with the cost of living index) Basic + Cash Value of concessional supply of materials like food, clothes, etc. An all inclusive rate which includes Basic + Special allowance + Cash value

11. Section 5 Fix & Revise the minimum wages Appropriate government may, establish as many committees and subcommittees necessary to hold enquiries, consisting equal number of members of: a) Employees b) Employers, c) Independent persons. by notification to the Official Gazette publish its proposal for the information

12. Procedure of fixing minimum wage Recommendation of advisory board for different class ( Skilled, unskilled, Clerk, Supervisor) Publish recommendations in National Publications ( for public comments/representations from Trade Unions) Hearing of the representatives Notification of Minimum Wages

13. Section 7 Section 8 Advisory Board Appointed by appropriate government. To coordinate the work of committees and sub committees appointed under Section 5. To advise appropriate government in fixing and revising minimum rates of wages. Central Advisory Board Consists of Members to be nominated by the Central Government representing employers and employees in the scheduled employment, who shall be equal in number, and Independent persons not exceeding one-third of its total number of members. One such member shall be appointed as the Chairperson by the Central Advisory Board.

14. Section 9 Composition of Committees Each of the committee, sub committee, advisory board shall consist of : a) Persons to be nominated by appropriate government. b) Individuals appointed to these committees shall be representatives of employers and employees in scheduled employments and shall be equal in number. c) an independent person to be the Chairman of the committee.

15. Section 11 Wages in kind Minimum wages under this Act shall be paid in cash. The appropriate government under necessary circumstances by notification to the Official Gazette a) authorise the payment of the minimum wages either wholly or partly in kind. b) authorise a provision for the supply of essential commodities at concession rates . The cash value of wages and the concession rates shall be authorised in the prescribed manner stated under the Act.

16. Section 12 Payment of minimum wages The employer shall pay the minimum rate of wages fixed to every employee working under him within such time and manner prescribed under the Act. The minimum wages had to be paid without any deductions other than statutory deductions Payment of wages less than minimum wages on the ground of less performance or output is illegal.

17. Section 13 Fixing hours of work For an adult working in a factory: Number of working hours should not increase 48 hours in a week with a weekly holiday . The daily hours should not exceed 9 hours with 1 hour rest interval . Provision for Compensatory holiday/overtime wages, if working on holiday.

18. Section 14 over time wages If the person has worked more than 48 hours in a week then the excess hours worked will be treated as overtime. Overtime wages will be twice the normal wage rate.

19. Section 15 worked less than hours If an employee has worked less than the required number of hours constituting a normal working day they shall be entitled to, receive wages in accordance with work done by him on that day as if he has worked a full day . In case the employer could not provide the activities of the job then, the employer is entitled to receive full salary. If employee has not worked due to his unwillingness then, he is not entitled to receive full salary .

20. Section 18 Records to be maintained The registers should contain the following particulars : 1) particulars of employed persons 2) the work performed by them 3) the wages paid to them 4) the receipts given by them

21. Section 20 Claims A labour commissioner or any other appointed authority is authorized to hear claims regarding non payment of minimum wages. Any aggrieved person may apply to the authority for settling his claims within 6 months.

22. Section 22 Penalties Offence Payment of less than minimum wages to employee Punishment Imprisonment which may extend up to 6 months or Fine which may extend up to Rs 500/- or both